Question:

Walk me through how to get from Revenue to Unlevered Free Cash Flow in your DCF projections

Answer hidden.

Answer:

First, Subtract COGS and Operating Expenses from Revenue to get to Operating Income (EBIT)

Then, Multiply EBIT * (1 - Tax Rate), add back D&A and all non-cash expenses, and adjust for changes in net working capital.

Finally, subtract Capital Expenditures to give you Unlevered Free Cash Flow